Next best thing?

[Anonymous]

I haven't sent any DV letters, GW, or PFD as of yet, but I already know that CAP1 auto isn't going to delete a CO I had from years ago. If an OC or CA refuses to accept a PFD, what is the next best option? 

[tangerinze]

How old is it? I would say nothing if its close to 7 years. baddies fall off at the 7 year mark. if you're already less than 2 years to that end point (and past a statute of limitations in your state to be sued) I'd sit tight & let time do its thing. 

If not- an agreement to get the account settled/ paid as agreed at least?

[Anonymous]

It's from 2014. I honestly tried working with them (they were extremely rude) and did for a very short time and they repo'd the car anyway. If it had been a month later, I could've saved it. Anyway, my point is that I'd like to buy a house next year and the VA home loan requires all collections be at least paid. I just wondered if paying them is going to reset the clock and lower my score right before trying to apply for the home loan?

[RobertEG]

The next best thing is to offer a settlement for less than the full amount of the debt, along with their agreement not to report the additional and optional comment that the debt was settled for less.

A settlement for less both saves you money and discharges the debt.  Both require paid, $0 balance update.

However, the creditor or debt collector then has the option of also including the special comment of paid/settled for less.

That informs others, in a manual review, that you have a history of not paying the full debt that you obligated, and thus lending to you may result in a loss.

That is never a favorable comment.

In your settlement offer, include the provision that they agree not to report any reference to the debt having been settled for less.

Your credit report will then view the same as if you had paid the debt in full.